Trulieve Reports Another Quarter of Record Revenue
Execution of strategic plan results in continued growth, profitability and expansion of patient base
TALLAHASSEE, FL, May 28, 2019 /CNW/ – Trulieve Cannabis Corp. (“Trulieve” or the “Company”) (CSE: TRUL) today announced its financial results for the first quarter of 2019 ended March 31, 2019. Unless otherwise stated, all currency is expressed in U.S. dollars.
First Quarter 2019 Financial & Operational Highlights
- Revenue grew 192% year over year, from $15.2 million in Q1 2018 to $44.5 million in Q1 2019
- Adjusted EBITDA¹ ² increased from $6.1 million in Q1 2018 to $19.0 million in Q1 2019
- Successfully settled with the Florida Department of Health, increasing the potential number of Trulieve dispensaries to 14 above the state cap
- First medical marijuana licensee to complete a sale of smokable flower following approval from Florida legislature
- Establishment of four new dispensaries in Florida, bringing the total to 26 throughout the state
- Received Minorities for Medical Marijuana’s inaugural 2018 Diversity and Inclusion Champion of the Year Award in the State of Florida
Recent Highlights & Developments
- Increased number of U.S. states Trulieve operates in to four, following acquisition of Connecticut-based dispensary The Healing Corner
- Received special permit to commence building our cultivation operations in Holyoke, Massachusetts
- Signed agreement with Blue River™ Extracts & Terpenes to bring their products to the Florida market, recently launching their dry-sift rosin product
- Filed final short form base shelf prospectus, valid for a 25-month period
Our first quarter results reflect our ability to deliver on our strategic initiatives, translating into continued strong financial performance. In addition to delivering on strong financial results we also achieved many significant milestones in the first quarter of the year. Growth continued in Florida with the opening of four new dispensaries, completing the first sale of smokable flower in Florida, and settling with the Florida Department of Health, allowing us an additional 14 stores above the state cap.
Kim Rivers, CEO of Trulieve
We are very pleased with the progress we experienced in the beginning of 2019 and are continuing to see that same momentum carry into the second quarter.
Financial Results
The Management Discussion and Analysis for the period and the accompanying financial statements and notes are available under the Company’s profile on SEDAR at www.sedar.com and on its website at https://www.trulieve.com/investors.
This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.
Outlook
Moving through 2019, the Company will continue to focus on expanding its footprint in Florida as well as further establish operations in the additional states it has recently entered. Currently, Trulieve achieved its goal of reaching 30 stores by end of Q2 with 28 Trulieve dispensary locations operating in Florida, one in California, and one added through the Connecticut acquisition.
When considering the rapidly growing smokable flower market in the State of Florida, the Company dedicated a large portion of current crop capacity to address the pent-up demand for the product. As the medical cannabis patient base expands due to the access of medical flower, combined with existing patients shifting to the product for their medical relief, the Company is poised to be the market leader in the product space.
Financial Guidance
Given recent positive operational and market developments, the Company is updating its existing full year 2019 guidance and providing a long-term outlook.
¹EBITDA and Adjusted EBITDA are non-IFRS financial measures. While Trulieve believes that these measures are useful for the evaluation and assessment of its performance, they do not have any standard meaning prescribed by IFRS, are unlikely to be comparable to similar measures presented by other issuers and should not be considered as an alternative to comparable measures determined in accordance with IFRS.
²Adjusted EBITDA and Gross margin do not include the net effect of changes in the fair value of biological assets.
2019:
Revenue is expected to grow 114% to 133% to a range of $220M to $240M. As previously disclosed, full year 2019 revenue growth guidance includes an expected increase in number of dispensaries in Florida as well as increased patient growth in the state due to the onboarding of smokable flower. Revenue and EBITDA from both California and Connecticut operations are also included. We expect adjusted EBITDA to be in the range of $95M to $105M reflecting our continued leverage of scale and financial discipline.
2020:
Guidance for 2020 incorporates our expansion into Massachusetts as well as continued growth in Florida, Connecticut, and California. Based on these markets, current regulations, and foreseeable store growth, we estimate 2020 revenues in the range of $380M to $400M, generating $140M to $160M in adjusted EBITDA.
Conference Call
The Company will host a conference call and live audio webcast on Wednesday, May 29, 2019 at 10:00 A.M. Eastern time, to discuss its first quarter 2019 financial results.
All interested parties can join the conference call by dialing 1-888-231-8191 or 1-647-427-7450, conference ID: 9573588. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until June 5, 2019 at midnight, ET. To access the archived conference call, please dial 1-855-859-2056 and enter the encore code 9573588.
A live audio webcast of the conference call will be available at:
https://event.on24.com/wcc/r/2006114/A46EB83FB805D4482BA9348BBD10A0E9
Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days by clicking the link above.
About Trulieve Cannabis Corp.
Trulieve is a vertically integrated “seed-to-sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve also operates in California, Massachusetts and Connecticut. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.
This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered or sold within the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
